April 23, 2004 in Social Responsibility News

SAMSUNG Electronics' Operating Profit Surpasses KRW 4 Trillion

SEOUL, Korea April 16, 2004: SAMSUNG Electronics Co., Ltd. announced its revenue and income results for the first quarter of 2004. Sales revenue reached KRW 14.41 trillion, while operating income and net income were KRW 4.01 and KRW 3.14 trillion, respectively, for the quarter. In particular, operating margins were at an impressive 27.8%. SAMSUNG recorded quarter-on-quarter growth in operating income and revenue of 52.6% (4Q03: KRW 2.63 trillion) and 11.9% (4Q03: KRW 12.89 trillion), respectively. Compared to figures from the same period last year, operating income and revenue grew by 197% (1Q03: KRW 1.35 trillion) and 50.1% (1Q03: KRW 9.60 trillion), respectively.
The Telecommunications Network (TN) Business accounted for 34% of sales with operating profits of KRW 1.26 trillion on sales of KRW 4.85 trillion. While 29% of the sales revenue is attributed to the Semiconductor Business with operating profits of KRW 1.78 trillion on sales of KRW 4.12 trillion, 16% of sales came from the LCD Business, which recorded operating profits of KRW 840 billion on sales of KRW 2.37 trillion. The Digital Media (DM) Business recorded operating profits of KRW 140 billion on sales of KRW2.17 trillion, thus contributing 15% to total sales revenue. The Digital Appliance (DA) Business with operating profits of KRW60 billion on sales of KRW800 billion accounted for 6% of the company's total sales.
The Semiconductor Business turned in notable performances. Increased sales of flash memory, rising price of DRAMs, advancements in its shrink technology, growing competitiveness of the System LSI business contributed to a quarter-on-quarter growth of 5.6% and 17.4% in sales and operating profit, respectively.
Due to increased demand with the growth of the LCD-TV market and rising sales price, the LCD Business closed the quarter with an impressive performance of 21% and 66% quarter-on-quarter growth in revenue and operating profit, respectively.
The TN Business recorded growth of 23% and 72% in sales and operating profit, respectively. With the launch of premium products, such as the color phone, camera phone and camcorder phone, volume sales of its mobile phones surpassed 20 million units attesting to the worldwide popularity of the company's high value-added mobile phones.
The DM Business experienced outstanding growth in the first quarter due to the strength of its digital TV business. 420 thousand units were sold in the first quarter and SAMSUNG expects digital TVs to take a cash-cow role in the future with the growth of the world-wide digital TV market. Despite the lull in domestic demand, the DA Business showed a remarkable turn-around from KRW 80 billion loss to KRW 60 billion operating gain.
In addition to its impressive earning figures, SAMSUNG Electronics' financial structure improved as assets grew from KRW 39.2 trillion to KRW 42.18 trillion, liability increased by KRW 610 billion and shareholders' equity reached to KRW 2.36 trillion. Compared to last year's 15%, return-on-equity increased to 41%, on an annualized basis.

Revenue Break-down by Business





Business

4Q03

1Q04

Growth





Semiconductor

3.91

4.12

5.6%





Memory

3.02

3.16

4.8%





System LSI+

0.51

0.54

5.2%





LCD

1.96

2.37

20.9%





Telecommunication Network

3.94

4.85

23.1%





Mobile Phone

3.60

4.61

28.0%





Digital Media

2.13

2.17

1.8%





Digital Appliance

0.86

0.80

(6.5%)





TOTAL REVENUE

12.89

14.41

11.9%







Operating Profit






Business

4Q03

1Q04

Growth





Semiconductor

1.52

1.78

17.4%





LCD

0.50

0.84

65.7%





Telecommunication Network

0.73

1.26

72.4%





Digital Media

0.003

0.14

4,964.3%





Digital Appliance

(0.08)

0.06

_





TOTAL OPERATING PROFIT

2.63

4.01

52.6%





About SAMSUNG Electronics


SAMSUNG Electronics Co. Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2003 parent company sales of US$36.4 billion and net income of US$5.0 billion. Employing approximately 88,000 people in 89 offices in 46 countries, the company consists of six main business units: Corporate Technology Operations, Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, SAMSUNG Electronics is the world's largest producer of color monitors, color TVs, memory chips, TFT-LCDs and VCRs. For more information, visit www.samsung.com .


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